Color, The $41 Million App, Really Is Shutting Down Now

Color, a startup which raised $41 million for a
photo-sharing service, only to be racked by executive turmoil and
consumer anomie, is shutting down its app, the company just
announced via its website.

"Alert: We hope you've enjoyed sharing your stories via real-time
video. Regretfully, the app will no longer be available after
12/31/2012," the notice reads.

The company behind the service is taking steps to shut down as
well, having distributed at least some assets to shareholders,
who received funds by wire transfer on Monday, Business Insider has learned.

That's according to Harmeet Dhillon, a lawyer for Adam
Witherspoon, a former employee who is
suing the company for retaliation and infliction of emotional
distress. (Witherspoon, as an early employee with vested stock,
was a Color shareholder.)

Witherspoon's lawsuit says Color had struck a deal for
Apple to take on approximately 20 members of
Color's engineering team. TechCrunch's
sources say the
value of that deal was $7 million.